Madhya Pradesh Launches GCC Policy to Boost Global Innovation

Sanjay Dubey, additional chief secretary at the Madhya Pradesh government, announced on LinkedIn the launch of a Global Capability Centres (GCC) Policy 2025.

Approved by the state cabinet, the policy builds on the success of the Madhya Pradesh IT, Information Technology Enabled Services (ITES), and ESDM Investment Promotion Policy 2023. This move seeks to transform Tier 2 cities in the state into hubs of global innovation, collaboration, and excellence.

Driving Growth Beyond Metro Cities

Dubey explained that India has long been a global leader in hosting GCCs for some of the world’s largest corporations. With the new policy, Madhya Pradesh aims to take this growth beyond metro cities by empowering Tier 2 locations with world-class infrastructure and strategic support. The initiative focuses on sectors like IT, finance, engineering, and HR, as well as emerging technologies.

“This policy is designed to unlock the potential of Madhya Pradesh’s cities, offering a cost-effective, connected, and innovation-driven ecosystem for global businesses,” Dubey added.

The Madhya Pradesh government will provide dedicated support to encourage research and development of artificial intelligence (AI), cybersecurity and related applications through GCCs in the state. New centres of excellence (CoE) for AI and cybersecurity in the state will be supported.

Comprehensive Framework for Business Growth

The GCC Policy 2025 provides a framework for sustainable business operations, supporting activities like financial planning, supply chain optimisation, and advanced analytics. 

Fiscal incentives will encourage the creation of CoEs in cutting-edge fields such as AI and cybersecurity. The policy also prioritises R&D activities, ensuring resources are available to drive impactful innovation.

On top of it, Madhya Pradesh’s Tier 2 cities offer businesses a unique combination of affordability and advanced infrastructure. These cities boast plug-and-play facilities, IT parks, special economic zones (SEZ), and excellent connectivity, creating a favourable environment for global companies to establish operations.

Why Madhya Pradesh?

Ranked fourth in the Ease of Doing Business Ranking 2023, the state offers affordable business operations and living costs, which are less than half of those in metro cities. 

With approximately 300 engineering colleges producing over 50,000 tech graduates annually and a talent pool of more than 2 lakh skilled IT/ITeS professionals, Madhya Pradesh houses an abundant, English-speaking workforce. 

Additionally, the state features well-developed, cost-effective cities and a large industrial land bank comprising over 120 industrial areas, over five SEZs, and more than 15 IT parks, making it an attractive hub for global business operations.

Previously, the Karnataka GCC policy also revealed the Karnataka government’s intentions to promote equitable growth across the state through its ‘Beyond Bengaluru’ initiative.

The goal is to replicate Bengaluru’s efficiency and success in other parts of the state, catalysing the growth of similar ecosystems in cities beyond the capital. 

The policy will focus on incentivising GCCs to set up operations in these cities. It also aims to showcase the offerings and capabilities of these cities, including Mangaluru, Mysuru, the Hubballi-Dharwad-Belagavi cluster, Kalaburagi, Tumakuru, and Shivamogga.